{"id":18512,"date":"2023-03-09T17:41:57","date_gmt":"2023-03-09T17:41:57","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/elizabeth-warren-blames-crypto-risk-for-silvergate-banks-liquidation-critics-dismiss-senators-claims-as-terribly-misinformed-bitcoin-news\/"},"modified":"2023-03-09T17:41:57","modified_gmt":"2023-03-09T17:41:57","slug":"elizabeth-warren-blames-crypto-risk-for-silvergate-banks-liquidation-critics-dismiss-senators-claims-as-terribly-misinformed-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/elizabeth-warren-blames-crypto-risk-for-silvergate-banks-liquidation-critics-dismiss-senators-claims-as-terribly-misinformed-bitcoin-news\/","title":{"rendered":"Elizabeth Warren Blames \u2018Crypto Risk\u2019 for Silvergate Bank’s Liquidation, Critics Dismiss Senator\u2019s Claims as \u2018Terribly Misinformed\u2019 \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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After Silvergate Bank announced its voluntary liquidation, U.S. senator Elizabeth Warren is attributing the financial institution\u2019s downfall to \u201ccrypto risk.\u201d According to Warren, she had previously warned about Silvergate. However, some critics are dismissing Warren\u2019s opinion as \u201cterribly misinformed\u201d and claim that she is \u201ctossing out egregious accusations.\u201d<\/strong><\/p>\n

Crypto Proponents Offer Different Perspectives on Silvergate Bank\u2019s Downfall After Elizabeth Warren Blasts So-Called \u2018Crypto Risk\u2019<\/h2>\n

Hours after Silvergate Bank announced its liquidation, U.S. senator Elizabeth Warren<\/a> (D-MA) tweeted<\/a> about the financial institution\u2019s demise. Warren once again referred to cryptocurrencies as risky and expressed disappointment about Silvergate\u2019s failure, which she deemed \u201cpredictable.\u201d<\/p>\n

On March 9, U.S. Senator Elizabeth Warren tweeted, \u201cI warned of Silvergate\u2019s risky, if not illegal, activity\u2014and identified severe due diligence failures. Now, customers must be made whole & regulators should step up against crypto risk.\u201d The Massachusetts senator\u2019s statement was met with criticism almost immediately after its publication. \u201cYou caused a bank run with spurious accusations and are now claiming you predicted it\u2014Olympic-level mental gymnastics,\u201d one individual responded<\/a> to Warren\u2019s tweet.<\/p>\n

\"Elizabeth<\/p>\n

The individual\u2019s comment about Warren starting the Silvergate bank run stems from the letter that Senator Warren, along with Senators Roger Marshall (R-KS) and John Kennedy (R-LA), wrote. The bipartisan letter<\/a> contained numerous accusations as it requested information on a \u201cmassive crypto scandal.\u201d In response to Warren\u2019s tweet on Thursday, one person asked<\/a> the politician if she had ever managed to \u201cnot be terribly misinformed while tossing out egregious accusations?\u201d<\/p>\n

Some critics argue that Warren is employing the age-old propaganda that blames objects rather than individuals and businesses for failure. This approach is akin to inanimate weapons causing violence on their own, a pencil writing a hateful letter autonomously, or cryptocurrencies causing harm to investors rather than the crypto business operators. Many critics on Twitter disagreed<\/a> with senator Warren\u2019s views on the matter. In response to her allegations, crypto CFA Ram Ahluwalia<\/a> offered a different perspective on the Silvergate situation.<\/p>\n

\u201cSilvergate, the first crypto bank, faced a bank run that led to its downfall,\u201d Ahluwalia wrote<\/a>. \u201cDespite facing allegations around AML, it was not these issues that ultimately caused the demise of [Silvergate Bank]. The responsibility for bank supervision lies with the Executive Branch, but this process was cut short. A senator\u2019s letter, amplified by social media, undermined public trust in Silvergate, ultimately leading to a crisis of confidence.\u201d<\/p>\n

Upon reviewing Warren\u2019s Twitter thread, there appears to be little to no support for her commentary in the post, despite the fact that the tweet has received 942 likes and was seen more than 724,000 times. Most of the responses to Warren\u2019s tweet express disgust<\/a> for her statements on the matter. As usual, criticism of the politician\u2019s actions likened them to politicians breaking legs to sell crutches.<\/p>\n

\u201cThis is why I hate political self-elevation at the expense of others,\u201d one person told<\/a> Warren. \u201cCrypto [and] blockchain solves many issues. Unfortunately, it doesn\u2019t solve posturing, self-serving interests, and fear-mongering by elected officials. Thanks for making it harder for honest, hardworking people.\u201d<\/p>\n

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Accusation<\/a>, Allegations<\/a>, AML<\/a>, bank supervision<\/a>, Bipartisan<\/a>, Blockchain<\/a>, commentary<\/a>, Criticism<\/a>, Critics<\/a>, crypto business operators<\/a>, crypto CFA<\/a>, crypto risk<\/a>, Cryptocurrency<\/a>, disgust<\/a>, downfall<\/a>, due diligence<\/a>, elected officials<\/a>, Elizabeth Warren<\/a>, Executive Branch<\/a>, failure<\/a>, fear mongering<\/a>, financial institution<\/a>, hardworking people<\/a>, honest<\/a>, Investors<\/a>, Liquidation<\/a>, political self elevation<\/a>, posturing<\/a>, principle of due process<\/a>, propaganda<\/a>, Ram Ahluwalia<\/a>, Regulators<\/a>, Responsibility<\/a>, risky activity<\/a>, scandal<\/a>, Senators<\/a>, Silvergate Bank<\/a>, Silvergate Downfall<\/a>, Silvergate Liquidation<\/a>, Social Media<\/a>, support<\/a>, Twitter<\/a><\/div>\n<\/div>\n

What are your thoughts on Senator Warren\u2019s views on cryptocurrencies and their role in the downfall of Silvergate Bank? Do you believe her accusations were justified, or do you think they were misguided and harmful to the institution? Share your opinions in the comments below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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